HMDA Exam Questions and answers Updated 2025/26 RATED A+

HMDA Exam Questions and answers
Updated 2025/26 RATED A+
What regulation goes with HMDA? - Correct Answers Regulation C
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II! Does HMDA require banks to make any certain types of loans or a certain number of loans? - Correct
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II! Answers No, it is just a loan application disclosure law where they need to disclose information annually
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II! for the home loan applications they take.
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II! Why was HMDA created? - Correct Answers concern over credit shortages in certain urban
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II! neighborhoods, banks were contributing to the decline of these neighborhoods through restrictive credit II! II! II! II! II! II! II! II! II! II! II! II!




II! practices



II! When is HMDA applicable to an institution? - Correct Answers 1. Assets of $48 million or more ($50
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2. Branch in an MSA
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3. originated or refinance at least one home purchase loan secured by a 1-4 family dwelling in last
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calendar year
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4. federally insured OR loan was federally covered OR loan was intended for sale to Fannie or Freddie AND
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5. Originated the required amounts in previous two calendar years
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II! What are the amounts of originations required to fall under HMDA? - Correct Answers 100 covered
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II! closed-end mortgages OR II! II!




500 covered open lines of credit 2018-2021 (200 for 2022)
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II! HMDA Exemption - Correct Answers Any state-chartered financial institution that is subject to
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II! disclosure requirements under state law that are substantially similar to those under the Regulation and
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II! adequate for enforcement as determined by the CFPB II! II! II! II! II! II! II!




II! What act allowed partial exemptions to HMDA? - Correct Answers Economic Growth, Regulatory Relief,
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II! and Consumer Protection Act
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, II! Numbers for the partial exemptions from HMDA - Correct Answers In each of the two preceding
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II! calendar years, few than: II! II! II!




1. 500 covered closed-end mortgage loans OR
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2. 500 covered open-end lines of credit
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II! Who are partial exemptions not available to? - Correct Answers Banks receiving a "needs to improve"
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II! CRA rating on each of its two most recent CRA evaluation.
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Or a "substantial noncompliance" cra rating on most recent CRA evaluation
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II! Application - Correct Answers an oral or written request for a covered loan that is not an excluded
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II! transaction, made in accordance with the procedures used by the institution for the type of credit
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II! requested



II! Dwelling - Correct Answers a residential structure, whether or not attached to real
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property. Property used for commercial and residential can count as dwelling if primary use is residential.
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II! Multifamily dwelling - Correct Answers includes a dwelling, regardless of construction method,
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that contains five or more individual dwelling units, as well as manufactured home communities
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not subject to reporting requirements like preapprovals, income, DTI.
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II! automated underwriting system (AUS - Correct Answers an II! II! II! II! II! II! II! II! II! II! II!




electronic tool developed by a securitizer, federal government insurer, or federal government guarantor of
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closed-end mortgage loans or open-end lines of credit.
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II! A person is a securitizer, federal government insurer, or
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federal government guarantor of closed-end mortgage loans or open-end lines of credit, respectively, if it
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has ever securitized, provided federal government insurance, or provided a federal government
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guarantee for a closed-end mortgage loan or open-end line of credit.
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